Record revenue of $158.0 million, an increase of 17.0% compared to Q2 2014

Non-GAAP earnings from operations of $10.7 million compared to $3.7 million in Q2 2014

Adjusted EBITDA of $13.1 million compared to $6.8 million in Q2 2014

Non-GAAP diluted EPS of $0.26 compared to $0.08 in Q2 2014

Vancouver, BC, August 7, 2015--(T-Net)--Sierra Wireless, Inc. (SWIR) (SW.TO) today reported results for its second quarter, ending June 30, 2015. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (GAAP), except as otherwise indicated below.

“We delivered strong year-over-year growth in both revenue and profitability in the second quarter of 2015,” said Jason Cohenour, President and Chief Executive Officer. “During the quarter, we also strengthened our market leading position in device-to-cloud solutions for the Internet of Things with the purchase of Accel Networks and the announced acquisition of MobiquiThings. We remain focused on profitable organic growth and strategic acquisitions that enhance our market position and business model.”

Revenue for the second quarter of 2015 was $158.0 million, an increase of 17.0% compared to $135.0 million in the second quarter of 2014. Revenue from OEM Solutions was $138.2 million in the second quarter of 2015, up 18.5% compared to $116.6 million in the second quarter of 2014. Revenue from Enterprise Solutions was $19.8 million in the second quarter of 2015, up 7.6% compared to $18.4 million in the second quarter of 2014.

GAAP RESULTS

Gross margin was $50.9 million, or 32.3% of revenue, in the second quarter of 2015, compared to $43.3 million, or 32.1% of revenue, in the second quarter of 2014.

Operating expenses were $46.8 million and earnings from operations were $4.1 million in the second quarter of 2015, compared to operating expenses of $49.6 million and a loss from operations of $6.3 million in the second quarter of 2014.

Net earnings were $4.1 million, or $0.12 per diluted share, in the second quarter of 2015, compared to a net loss of $8.2 million, or $0.26 per diluted share, in the second quarter of 2014.

NON-GAAP RESULTS

Gross margin was 32.4% in the second quarter of 2015, compared to 32.2% in the second quarter of 2014.

Operating expenses were $40.4 million and earnings from operations were $10.7 million in the second quarter of 2015, compared to operating expenses of $39.8 million and earnings from operations of $3.7 million in the second quarter of 2014.

Net earnings were $8.6 million, or $0.26 per diluted share, in the second quarter of 2015, compared to net earnings of $2.6 million, or $0.08 per diluted share, in the second quarter of 2014. The non-GAAP tax rate in the second quarter of 2015 was 19.6%.

Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $13.1 million in the second quarter of 2015, compared to $6.8 million in the second quarter of 2014.

Cash and cash equivalents at the end of the second quarter of 2015 were $96.5 million, representing a decrease of $3.1 million, compared to the end of the first quarter of 2015. The decrease was primarily due to the payment of $9.3 million for the purchase of Accel Networks LLC, and capital expenditures, partially offset by cash generated from operations in the quarter.

We disclose non-GAAP financial measures as we believe they provide useful information on actual operating results and assist in comparisons from one period to another. Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to similar measures presented by other companies.

In the third quarter of 2015, we expect revenue and gross margin percentage to be similar to the second quarter of 2015 and operating expenses to increase slightly compared to the second quarter of 2015. This guidance does not include any contribution from the announced acquisition of MobiquiThings. This results in the following non-GAAP guidance for the third quarter of 2015:

Q3 2015 Guidance

Consolidated

Non-GAAP

Revenue

$157.0 to $160.0 million

Earnings from operations

$9.5 to $11.0 million

Net earnings

$7.5 to $9.0 million

Earnings per share

$0.23 to $0.27 per share

This non-GAAP guidance for the third quarter of 2015 reflects current business indicators and expectations. Inherent in this guidance are risk factors that are described in greater detail in our regulatory filings. Our actual results could differ materially from those presented above. All figures are approximations based on management's current beliefs and assumptions.

Cautionary Note Regarding Forward-Looking Statements

Certain statements and information in this press release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws (“forward-looking statements”) including statements and information relating to our financial guidance for the third quarter of 2015 and our fiscal year 2015, our business outlook for the short and longer term and statements regarding our strategy, plans and future operating performance. Forward-looking statements are provided to help you understand our views of our short and longer term plans, expectations and prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We do not intend to update or revise our forward-looking statements unless we are required to do so by securities laws.

Forward-looking statements:

Typically include words and phrases about the future such as “outlook”, “will”, “may", “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”.

Are not promises or guarantees of future performance. They represent our current views and may change significantly.

Are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect:

our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance;

our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;

expected deployment of next generation networks by wireless network operators;

our operations not being adversely disrupted by component shortages or other development, operating or regulatory risks; and

expected tax rates and foreign exchange rates.

Are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including without limitation, the following factors. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR atwww.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada:

competition from new or established service providers or from those with greater resources;

higher than anticipated costs; disruption of, and demands on, our ongoing business; and diversion of management's time and attention in connection with acquisitions or divestitures;

we may experience difficulty responding to changing technology, industry standards and customer requirements;

the loss of any of our significant customers;

cyber-attacks or other breaches of our information technology security;

our reliance on single source suppliers for certain components used in our products;

failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects or other quality issues;

we may be found to infringe on intellectual property rights of others;

the transmission, use and disclosure of user data and personal information could give rise to liability or additional costs;

we may not be able to obtain necessary rights to use software or components supplied by third parties; and

we have operations outside of North America and therefore are subject to risks inherent in foreign jurisdictions.

About Sierra Wireless

Sierra Wireless (SWIR) (SW.TO) is building the Internet of Things with intelligent wireless solutions that empower organizations to innovate in the connected world. We offer the industry's most comprehensive portfolio of 2G, 3G and 4G embedded modules and gateways, seamlessly integrated with our secure cloud and connectivity services. OEMs and enterprises worldwide trust our innovative solutions to get their connected products and services to market faster. Sierra Wireless has more than 1000 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.

"AirPrime," "AirLink," and "AirVantage" are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.

Sierra Wireless is the global leader in M2M devices and cloud services, delivering intelligent wireless solutions that simplify the connected world with the industry’s most comprehensive portfolio of 2G, 3G and 4G embedded modules and gateways.